Cresco Labs Inc (CRLBF)

[IndustryParticipant]

I want to explain why this greatly disappoints me...

Cresco's strength was their ability to proceed with primarily "organic growth" through state application processes as well as their ability to execute the very same operations with a higher degree of competence than most.

$1 Billion dollars to acquire distribution into 500 California dispensaries? That's called a sales team, and I myself would have been more than glad to undertake that engagement and target for $1MM or less, which would look like this: "Give me $1MM and 6 months and quality product and we'll get you on shelves. We just need the quality and pricing".

Bottom line:
Whatever was just secured and achieved could have been done within 12 months with $40MM or less.

I'm extremely disappointed.

Just my sound, reasonable, rational opinion as an industry operator. I've done well with them (trades and positions) and will continue to in years to come, but this was not a wise move. Brands can be developed by the dozens for pennies and a minimal team. Production sites can be licensed and built out for pennies per se.

"Buying" one's footprint at the levels the industry has seen is going to have a negative impact at some point in the future, which, on the bright side, should represent more amazing opportunities for patient and disciplined traders and investors.